Implication of GST & Income tax on purchase of a second hand machine

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Our Company had sold an equipment to a customer (A) in May 2017 @ ₹ 20 lakhs (incl. CST). The customer (A) has paid us only ₹ 7 lakhs till date.He has expressed his inability to pay the balance ₹ 13 Lakhs and has asked the company to take back his machine or help him sell his machine. Now we have found a customer (B) who has agreed to purchase the machine @Rs.13 Lakhs from him. S .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ince the company has to recover ₹ 13 lakhs from csutomer (A), it is insisting on getting the payment to be made directly to them by customer (B). So in this deal, I have some queries 1 Is GST applicable in this deal as Customer (A) is reselling the machine at a loss to Customer (B) ? 2 Can company take payment from Customer (B) directly in its name.? 3 Can customer (A) give an inv .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... oice to cutomer (B)? 4 What are the income tax implications on Customer (B) ? 5 Can he show machine purchased from Customer (A) in his ITR? and what are the documents required from Customer (A) to transfer the ownership of the machine to Customer (B) 6 Can customer (B) claim depreciation on the machine in future? - Reply By YAGAY and SUN - The Reply = In our view the Customer A is unde .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... r statutory liability to pay the GST while selling to Machine to B. In GST book adjustment and recovery from third party is allowed. - Implication of GST & Income tax on purchase of a second hand machine - Query Started By: - Kishore Padav Dated:- 8-5-2018 Goods and Services Tax - GST - Got 1 Reply - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Man .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... agement India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X